BRIEF: Guming to raise $220 million in Hong Kong IPO

Bubble tea seller Guming Holdings Ltd. (1364.HK) launched its Hong Kong IPO on Tuesday, saying it will offer nearly 159 million shares to local and international investors. It set an IPO price range of HK$8.68 to HK$9.94, with shares available in lots of 400 at an entry fee of HK$4,016 per lot. At that range, the listing will raise approximately HK$1.58 billion ($220 million). The shares will make their trading debut on Feb. 12.

Guming’s profit rose from 20.13 million yuan ($2.8 million) in 2021 to 1.06 billion yuan in 2023. Its profit continued to grow in the first three quarters of last year, rising 11% year-on-year to 1.1 billion yuan.

China’s bubble tea market has become increasingly overheated in the last year, pressuring all major players. One of those, Chabaidao (2555.HK), went public last April and saw its shares drop 27% on their first day. Its shares have been weak since then and continue to trade below their IPO price. Guming is the latest major player from the group to list in Hong Kong. Sector leader Mixue also relaunched its Hong Kong IPO last month.

By Lau Chi Hang

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